{"id":19035,"date":"2024-11-29T12:33:15","date_gmt":"2024-11-29T10:33:15","guid":{"rendered":"https:\/\/forklog.com\/en\/coinbase-to-halt-usdc-rewards-in-eu-due-to-mica-regulations\/"},"modified":"2024-11-29T12:33:15","modified_gmt":"2024-11-29T10:33:15","slug":"coinbase-to-halt-usdc-rewards-in-eu-due-to-mica-regulations","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/coinbase-to-halt-usdc-rewards-in-eu-due-to-mica-regulations\/","title":{"rendered":"Coinbase to Halt USDC Rewards in EU Due to MiCA Regulations"},"content":{"rendered":"<p>On December 1, 2024, Coinbase will cease its rewards program for USDC holders in the EU, as announced in a client letter dated November 28.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA <a href=\"https:\/\/twitter.com\/coinbase?ref_src=twsrc%5Etfw\">@coinbase<\/a> <a href=\"https:\/\/twitter.com\/circle?ref_src=twsrc%5Etfw\">@circle<\/a> <a href=\"https:\/\/t.co\/8GCGlpt8Xd\">pic.twitter.com\/8GCGlpt8Xd<\/a><\/p>\n<p>\u2014 Marina Markezic (@MarinaMarkezic) <a href=\"https:\/\/twitter.com\/MarinaMarkezic\/status\/1862161507947286886?ref_src=twsrc%5Etfw\">November 28, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Under this program, Coinbase clients earn interest on USDC deposits in their accounts, with yields varying by jurisdiction.\u00a0\u00a0<\/p>\n<p>The decision to suspend the program is linked to the MiCA legislation. EU users will continue to receive rewards until November 30, with payments processed within the first 10 business days of December.<\/p>\n<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<p>MiCA introduces several restrictions on the European crypto market, including rules for stablecoin issuers. Some regulations took effect on June 30, 2024, with others commencing on December 30.<\/p>\n<\/div>\n<p>In October, Coinbase warned it would restrict access to certain assets for users in the <span data-descr=\"European Economic Area\" class=\"old_tooltip\">EEA<\/span> as new requirements come into force.<\/p>\n<p>Circle, a co-issuer of USDC alongside Coinbase, has already <a href=\"https:\/\/forklog.com\/en\/news\/circle-secures-first-mica-compliant-stablecoin-license\">secured<\/a> an Electronic Money Institution (EMI) license from the French regulator <span data-descr=\"French Prudential Supervision and Resolution Authority\" class=\"old_tooltip\">ACPR<\/span>, allowing it to issue EURC and USDC in the European Union.<\/p>\n<p>On November 27, the issuer of the leading stablecoin USDT, Tether, announced it would discontinue support for its euro-pegged token EURT, citing low demand and stricter regulations.<\/p>\n<p>According to the company&#8217;s CEO, Paolo Ardoino, European regulatory requirements <a href=\"https:\/\/forklog.com\/en\/news\/tether-ceo-criticises-mica-as-a-threat-to-stablecoins-and-banking\">pose a &#8220;systemic risk&#8221;<\/a> to stablecoins and the entire banking system. He noted that the requirement to hold 60% of reserves in uninsured accounts in the EU is &#8220;not a very good idea,&#8221; potentially leading to the bankruptcy of many financial institutions.\u00a0<\/p>\n<p>Tether is among the investors in the fintech project Quantoz, which has launched EURQ and USDQ tokens\u2014MiCA-compliant stablecoins on the Ethereum blockchain.<\/p>\n<p>Exchanges such as <a href=\"https:\/\/forklog.com\/en\/news\/binance-to-restrict-access-to-certain-stablecoins-in-the-eu\">Binance<\/a>, <a href=\"https:\/\/forklog.com\/en\/news\/kraken-evaluates-potential-delisting-of-usdt-in-the-eu\">Kraken<\/a>, and <a href=\"https:\/\/forklog.com\/en\/news\/okx-to-remove-usdt-trading-pairs-in-europe-reports-suggest\">OKX<\/a> have also warned of service discontinuations for stablecoins in the EU due to MiCA requirements.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>On December 1, 2024, Coinbase will cease its rewards program for USDC holders in the EU, as announced in a client letter dated November 28. MICA is kicking in -> Sunsetting USDC Rewards in the EU Due to MiCA @coinbase @circle pic.twitter.com\/8GCGlpt8Xd \u2014 Marina Markezic (@MarinaMarkezic) November 28, 2024 Under this program, Coinbase clients earn [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":19034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,733,1483],"class_list":["post-19035","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-europe","tag-mica"],"aioseo_notices":[],"amp_enabled":true,"views":"48","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=19035"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/19035\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/19034"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=19035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=19035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=19035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}